What happens if you own shares in a company that goes bust?

The contract still holds and you’ll still get your shares. Your money has been paid, you’ll receive the stock (but won’t be able to sell it) and you’ll get any value that comes to shareholders out of the administration process.

What does it mean if a company isn’t profitable?

A company’s net profit is the revenue after all the expenses related to the manufacture, production, and selling of products are deducted. Without sufficient capital or the financial resources used to sustain and run a company, business failure is imminent.

What are the worst reasons to sell an investment?

Selling because of a bad quarter or a rough year is one of the worst reasons to sell an investment. The first thing to look at when selling an investment is the fees you will have to pay.

Is the market to blame for your investment failure?

People who have failed will often try to blame the market when in reality, most investment failures fall squarely on the investor. What I’m writing here is nothing new. It’s obvious. It’s so obvious and familiar that it’s dangerous. Familiarity is dangerous. Say you go to a friends home who lives close to the airport.

Why do most people lose money in the stock market?

Lack of self-control emotionally is why most people lose money in the stock market, but I add other aspects in this article. People who have failed will often try to blame the market when in reality, most investment failures fall squarely on the investor. What I’m writing here is nothing new.

What are the most common reasons to sell stocks?

The most common reason to sell stocks is to adjust your portfolio. The other reason to sell an investment is to free up capital. Selling because of a bad quarter or a rough year is one of the worst reasons to sell an investment.